PayPal reversing a charge

[Nutter]

A little background first. I have a web application that I wrote that's available in a free and pro version. The pro version has a set of files that contain the upgraded features. Registration is done through PayPal, which I'm now thinking may have been a poor choice.

Last week I received an email from PayPal about a dispute arising from a purchase in late November. They reversed the charge and took the $100 out of my account. Problem is, the client is still using the pro version of my software on their site.

So, I'm wondering what my options are.

My gut tells me that it's only $100 and to treat it like a business lesson and find a way to have the pro version "phone home" every month or so to revalidate its status. Doesn't help me on this particular case, but it will in the future.

I have of course emailed PayPal with information on when the pro files were sent, when her server showed up in my logs as getting the pro files, and the web address where she is using the software and how they can tell it's still the pro version.

I'm tempted to check with the host and ask that they delete the files which would drop it back to the free version and there wouldn't be a problem.

But I suppose I need to actually check with the buyer. She hasn't written anything to me about the dispute. I guess it's possible I'm getting worked up over what was an accidental issue.

Sorry for the length, but I'm a little frustrated and would like advice from someone who has been through something similar.

[encyclo]

Before going "on the attack", how about contacting the customer, informing them that you have been made aware of the chargeback, and reminding them of their license obligations - I assume here that your license for the application mentions that unlicensed installations are unauthorized.

[Nutter]

That's what I did, and it wound up being that her husband didn't recognize the charge and initiated a chargeback on the card in December. PayPal sent me notice on 1/20 and it actually all settled out ok. What I didn't catch is that Paypal listed the dispute in the transaction list on the first page but the reversal didn't show there. It was buried a couple pages down.